U.S. News - "The Spring of Home Sellers' Discontent" (6-9-07)

"Indeed, the numbers suggest that things are likely to get worse before they get better. After a sluggish start to the spring selling season, the National Association of Realtors reported that pending sales dropped 3.2 percent in April, the most recent data available, while mortgage applications fell about 2 percent over the past month, according to the Mortgage Bankers Association. Meanwhile, inventories of unsold homes in major metro areas rose another 5 percent in May, according to Zip Realty, nearly a one-third increase over the same time last year. And while home builders have cut back on construction by about as much, 'they still have a lot of money in the ground,' Credit Suisse housing analyst Ivy Zelman says of the raw land still on builders' books. 'And the only way to get their cash back is to build more houses.'"

The Washington Post - "Dressed to Sell" (6-9-07)

"Sales were swift when Winchester Homes began marketing Broad Creek Landing, a cul-de-sac community of 24 single-family houses not far from downtown Annapolis -- so swift that Winchester officials saw no need to decorate their model home. But 18 months later, the market has cooled and there are seven houses left to be sold, starting in the upper $700,000s."

Market Watch - "AIG's subprime unit slapped by regulator" (6-9-07)

"Wilmington Finance Inc., a subsidiary of New York-based AIG provided extensive loan-origination services for AIG Federal Savings Bank from July 2003 to May 2006, but the bank failed to manage and control its activities in a safe and sound way and didn't consider consumer-protection issues appropriately, the U.S. regulator explained. Wilmington originated subprime home loans that were inappropriate for some borrowers, and the firm didn't properly consider their ability to repay the debt. Some were adjustable-rate mortgages with low "teaser" rates and the OTS was concerned that once the rates reset, borrowers would be unable to afford the payments and could lose their homes to foreclosure, said Kevin Petrasic, an agency spokesman."

Reuters - "US CREDIT-D.R. Horton's debt risks junk status" (6-9-07)

"D.R. Horton Inc.'s (DHI.N: Quote, Profile, Research) debt ratings are teetering on the brink of junk territory and further weakness in the housing sector and tighter lending standards may push the largest U.S. home builder's ratings over the edge. Moody's Investors Service on Wednesday changed its outlook on Horton to negative from stable, indicating the company's debt ratings may be lowered into junk territory over the next 12 to 18 months."

Reuters - "Rising rates seen adding to housing woes" (6-9-07)

"The U.S. housing market, already on shaky ground after being sideswiped by the subprime loan crisis, faces a larger struggle from a long dormant threat -- swift rises in mortgage rates. If this week's massive sell-off in the bond market continues, mortgage rates will climb and borrowers will have an even harder time buying a new house or refinancing existing mortgages."

Contra Costa Times - "Rising yield strains consumers" (6-9-07)

"Investors' expectations of an interest rate cut -- and home buyers' hopes for cheaper mortgages -- seem to be disappearing. The yield on the Treasury's 10-year note passed 5 percent Thursday, closing at a session high of 5.13 percent, its highest point since mid-July."

Orange County Register - "New home sales contracts flat in April" (6-9-07)

"The number of new home sales contracts signed in April was virtually the same as a year ago in Orange County, while contracts fell 40 percent statewide, Hanley Wood Market Intelligence of Costa Mesa reported Friday. Overall, buyers signed sales contracts for 355 new Orange County homes in April, compared with 356 in April 2006, Hanley Wood reported. Sales were up 22 percent for single-family homes and for townhomes here, the new report shows. But sales fell 32 percent for Orange County condos."

Los Angeles Times - "New-home sales increase" (6-9-07)

"Sales at major new-home communities in parts of Southern California picked up in April as Los Angeles, Orange and San Diego counties bucked statewide trends to post gains from the previous month, an industry report Friday showed. Still, April's sales figures remained weaker throughout the state compared with a year earlier, with total sales falling 40%, the California Building Industry Assn. said. And after holding steady for several months, median asking prices fell 6.2% statewide as builders slashed prices to move unsold inventory."

Los Angeles Times - "Inventory Glut: L.A. Housing Inventory Growing at Rapid Pace" (6-9-07)

"Things you can learn from listening to Bob Brinker on KABC while driving your mother-in-law to the airport: the backlog of unsold houses in Los Angeles is growing much more rapidly than in other cities. In fact, Bob reported to me, L.A.'s inventory of homes for sale grew by 10% in May, and only two cities had a faster-growing inventory. Thanks, Bob."